The UK-based Primary Health Properties expects about £0.5 billion ($670 million) in net cash from a joint venture with Singapore’s GIC, a sovereign wealth fund, and will use the money to cut debt.

In a statement on Monday, Primary Health Properties said completion is expected in November 2026 and depends on a new secured club debt facility.

The venture will be seeded with 27 private hospitals from PHP’s existing portfolio, with a gross asset value of about £0.7 billion. The hospitals will be transferred at a 5 percent discount to their December 31, 2025 book value.

PHP will keep a 50 percent interest and act as property and asset manager for the venture.

PHP will utilize the proceeds to repay and cancel in full the acquisition bridging facility it used to buy Assura plc in 2025, along with a £266 million term loan. The figure is net of the equity PHP retains in the venture and of £47.5 million of deferred consideration.

After completion, the company said its net debt would fall to about £2.9 billion, at a weighted average interest rate of 3.6 percent.

PHP said the venture would also diversify its earnings. It keeps a significant stake in the hospital portfolio and gains a recurring management fee, with potential performance fees on top.

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